Aussie Dollar Boosted as US Dollar Continues to Weaken

AUD

The Aussie Dollar opens the week in the green against the majors as the US Dollar continues to weaken following last weeks unexpected treasury intervention in the bond market. Asian equities had a mixed end to the week with the Nikkei closing -0.3%, the Hang Seng +1.2% and the ASX 200 -0.3%. A quieter day on the data calendar to start the week, with the main event coming on Wednesday with the release of our monthly CPI inflation data. Tomorrow will also see the release of  the RBA's Monetary Policy Meeting Minutes, which may provide some further insight into possible pathways for the RBA going forward. Across Asia, Japan will see the release of the BOJ Core CPI y/y data which is currently forecasted at 1.4% from a previous 1.5%.

USD

AUDUSD opens higher at 0.7168 to hover around a three month high as the US Dollar continues to bleed, weighed down by the US Treasury's plan to boost repurchases of long-term securities. A positive end to the week on Wall St. saw the Dow Jones close +1%, and both the S&P 500 and the Nasdaq +0.4%. US 10-year yields rose 3bps to 4.73%, while Brent Crude was steady at $86.70 a barrel. US Flash Manufacturing PMI and Flash Services PMI data released late last Friday and showed a moderate growth to services. Manufacturing came in at 53.2 (exp 53.9) from a previous 53.9 and Services printed at 56.8 (exp 54.0) from a previous 54.6. Looking ahead, Treasury Sec Bessent will be holding a press conference tomorrow about new US sanctions and economic measures against Iran. However the main focus will be on Wednesday with the release of the Core PCE Price Index m/m, currently forecasted at 0.2% from a previous 0.1%.

EUR

AUDEUR opens up at 0.6139 this morning as the pair capatlises on the greenbacks weakness. European equities closed in the green with the DAX and CAC at +0.6% and +0.4% respectively. Late Friday evening Eurozone PMI data released, with the main takeaways being Germany's modest growth of manufacturing activity and France's decline in services. A mostly quiet week ahead in terms of major data.

GBP

AUDGBP opens higher at a rate of 0.5254 this morning. UK equities closed stronger with the FTSE up +0.6%. UK Flash Manufacturing PMI data came in largely as expected at 51.5 (exp 51.6) from a previous 51.9, and Flash Services PMI's beat expectations to release at 52.8 (exp 51.8) from a previous 52.1. Looking ahead, the next couple of weeks are shaping up to be quiet with no major releases on the horizon.

NZD

AUDNZD saw a slight bump over the weekend to open at a rate of 1.1996. Earlier this morning, Core Retail Sales q/q released at 0.7% (exp 0.3) from a previous 1.1% and Retail Sales q/q came in at -0.5% (exp 0.1%) from a previous 1.0%. The data showed that eight of the 15 industries had lower seasonally adjusted sales volumes in the June 2026 quarter compared with the March 2026 quarter.